Many organizations believe financing has no value for them. They have plenty of cash or capital to purchase their equipment. Little thought is given to a smarter way to pay, especially with telecom technology. It’s accepted practice to finance equipment, such as copiers.
Here are four reasons why financing your IT equipment is better for your business than a cash purchase:
1. First, a monthly payment helps you avoid large up-front capital outlay, and preserves cash for financial emergencies, or better yet, revenue-producing assets or projects.
2. Second, financing offers payment flexibility. You can opt for monthly, annual, deferred or step-up payments. With cash, there is NO flexibility.
3. Third, depleting cash or capital, on a depreciating asset like technology, can negatively affect credit. Financing, however, builds trade history and establishes a verifiable, usable credit rating.
4. Fourth, the true value of time is money. Even when ownership is the goal, because payments are spread over time, financing is often the lowest-cost method for ownership.
So inform yourself, and make a sound financial decision on your next technology acquisition.